Do you have an extra room in your house? Or maybe you are looking at investing in a rental property? Here is some insight to Colorado and La Plata County’s short-term rental (STR) regulations. A STR is defined as a privately owned unit or room being rented for less than 60 days at a daily or weekly rate. Companies such as Airbnb, VRBO, Booking.com, and Craigslist allow the owner advertise their space for vacationers. However, it’s not just as easy as hopping on the web with a few pictures. The State of Colorado requires a STR license. This permit can last from one to three years depending on the type of property you are renting with the ability to renew. The State also requires you to collect and remit tax. As of 2020, the taxes break down into three categories: state sales, county sales, and county lodging totaling to 6.9%. Other requirements entail having a property manager living within 30 minutes available 24/7 and a rental policy detailing maximum occupancy, directions, parking, fire safety, pets, and garbage duties. The City of Durango has a very specific permitting process, so if the property is within the city limits, you’ll need to work closely with their Planning Department to confirm eligibility.
Durango is a prime market for an Airbnb because of the vast amount of tourism the town sees. Having one can open a property management position for a local and can also add a little cash into your pocket. However, it’s been noted that these short-term rentals can also take away from commercial lodging (such as hotels and inns) and can negatively impact the housing supply and cost for locals or newcomers wanting a long-term rental. If you decide that you want to rent your property, remember to communicate with your neighbors and give them your and the property manager’s phone numbers in case of concerns. Opening up your home generates an opportunity for tourists to live the Durango lifestyle and see what it’s like to be part of our wonderful mountain town!
If you are considering a vacation rental property, please contact our team of experts.
See more on short-term rentals here!